KRS 304.26-050: Unlawful sales of equity securities by beneficial owner, director, or

officer.

(1) It is unlawful for any such beneficial owner, director, or officer, directly or

indirectly, to sell any equity security of such insurer if the person selling the security

or his or her principal:

(a) Does not own the security sold; or

(b) If the owner of the security does not deliver it against such sale within twenty

(20) days thereafter, or does not within five (5) days after such sale deposit it

in the mails or oth er usual channels of transportation, but no person shall be

deemed to have violated this section if he or she proves that notwithstanding

the exercise of good faith he or she was unable to make such delivery or

deposit within such time, or that to do so would cause undue inconvenience or

expense.

(2) The commissioner shall establish, and from time to time amend, regulations with

regard to proxies, consents, or authorizations in respect of securities issued by any

domestic stock insurer, such regulations to conform to those prescribed by the

National Association of Insurance Commissioners.